Consider Three Different Closed Economies with the Following National Income

question 130

Multiple Choice

Consider three different closed economies with the following national income statistics. Country A has taxes of $40 billion, transfers of $20 billion, and government expenditures on goods and services of $30 billion. Country B has private savings of $60 billion, and investment expenditures of $50 billion. Country C has GDP of $300 billion, investment of $70 billion, consumption of $180 billion, taxes of $60 billion, and transfers of $20 billion. Based on this information, which country has a $10 billion deficit?

• A)Country A
• B)Country B
• C)Country C
• D)all three countries

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Definitions:

World Health Organization

A specialized agency of the United Nations responsible for international public health, working to address health issues and promote healthy living globally.

Universal Perspective

A viewpoint that tries to consider things in a comprehensive, global manner, transcending individual or local interpretations.

Explanatory Model

A conceptual framework or theory that helps to understand, explain, or predict phenomena or behavior in a comprehensive manner.

Sangoma

A traditional healer or shaman in South African cultures, known for their ability to communicate with ancestors, use herbal medicine, and perform rituals to heal physical or spiritual ailments.